TechnipFMC plc

Previous wording

Overall Outlook - The global economy is expected to show moderate growth in 2026, led by India, China, and the United States. Resilient consumer spending and easing of monetary policy in key regions should be essential drivers of economic growth. Continued investment in artificial intelligence (AI) is expected to provide additional support. Military activity in the Middle East, shifting trade and inflation dynamics, and an uneven global recovery present risk to the growth outlook.

Current wording

Overall Outlook - The global economy is expected to show moderate growth in 2026, led by India, China, and the United States. Resilient consumer spending and continued investment in artificial intelligence (AI) should be essential drivers of economic growth. Military activity in the Middle East, shifting trade and inflation dynamics, more restrictive monetary policies, and an uneven global recovery present risk to the growth outlook.

Previous wording

In our New Energy business, we are executing multiple first-of-its-kind project awards, including the Mero 3 HISEP® project for Petrobras offshore Brazil. This project is enabling the capture, processing, and reinjection of CO 2-rich dense gases on the seabed to reduce emission intensity while increasing production. In the UK, we are executing the first all-electric, subsea integrated engineering, procurement, construction and installation (“iEPCI®”)for carbon capture and storage for the Northern Endurance Partnership, a joint venture between bp, Equinor, and TotalEnergies.

Current wording

In our New Energy business, we are executing multiple first-of-its-kind project awards, including the Mero 3 HISEP® project for Petrobras offshore Brazil. This project is enabling the capture, processing, and reinjection of CO 2-rich dense gases on the seabed to reduce emission intensity while increasing production. In the United Kingdom, we are executing the first all-electric, subsea integrated engineering, procurement, construction and installation (“iEPCI®”) for carbon capture and storage for the Northern Endurance Partnership, a joint venture between bp, Equinor, and TotalEnergies.

Previous wording

Surface Technologies– North American activity is among the most impacted by commodity prices given the relatively high cost of development in the region. Our surface activities on US land represented less than five percent of total Company revenue in 2025.

Current wording

Surface Technologies– North American activity is among the most impacted by commodity prices given the relatively high cost of development in the region. Our surface activities on U.S. land represented less than five percent of total Company revenue in 2025.

Previous wording

Revenue increased by $228.4 million during the three months ended June 30, 2026, compared to the same period in 2025. The increase was primarily attributable to an increase in Subsea revenue of $270.6 million. This growth was driven by the conversion of backlog, which was 17.4% higher as of December 31, 2025, when compared to December 31, 2024, resulting in increased revenue activity across iEPCI® and SPS supply activities, particularly in Latin America, Asia Pacific, Africa, and the Middle East. This increase was partially offset by lower activity in Europe and North America.

Current wording

Revenue increased by $248.5 million during the three months ended September 30, 2026, compared to the same period in 2025. The increase was primarily attributable to $280.8 million higher Subsea revenue. This growth was driven by the conversion of backlog, with backlog being 17.4% higher at December 31, 2025, when compared to December 31, 2024, resulting in increased revenue activity across iEPCI®, SPS supply and Services activities, particularly in Latin America, Asia Pacific, and the Middle East. This increase was partially offset by lower activity in North America and Africa.

Previous wording

Gross profit (revenue less cost of sales) increased to $684.7 million during the three months ended June 30, 2026, compared to $593.3 million in the prior-year period. The increase was primarily attributable to an increase in Subsea gross profit of $104.8 million, of which $62.8 million was due to volume increase and $42.1 million was due to favorable activity mix.

Current wording

Gross profit (revenue less cost of sales) increased to $728.7 million during the three months ended September 30, 2026, compared to $603.8 million in the prior-year period. The increase was primarily attributable to an increase in Subsea gross profit of $132.4 million, of which $66.3 million was due to favorable activity mix and $66.1 million was due to volume increase.

Previous wording

Selling, general and administrative expense increased by $27.8 million for the six months ended June 30, 2026, compared to the same period in 2025, primarily driven by higher share-based compensation expenses.

Current wording

Selling, general and administrative expense increased by $9.5 million for the three months ended September 30, 2026, compared to the same period in 2025, primarily driven by higher share-based compensation expenses.

Previous wording

Restructuring, impairment and other expenses decreased by $11.4 million compared to the prior-year period. This decrease was primarily due to business transformation initiatives within Surface Technologies incurred during the three months ended June 30, 2025, and was partially offset by $5.5 million of impairment and restructuring costs in Subsea recognized during the three months ended June 30, 2026.

Current wording

Restructuring, impairment and other expenses decreased by $2.6 million compared to the prior-year period. This decrease was primarily due to impairments of tangible assets and restructuring during the three months ended September 30, 2025.

Previous wording

Other expense, net increased $8.0 million year-over-year, primarily due to higher foreign currency remeasurement losses, partially offset by lower non-operating charges. Other expense, net primarily includes foreign currency remeasurement gains and losses on net monetary assets and liabilities, gains and losses on sales of property, plant and equipment, and other non-operating items.

Current wording

Other income (expense), net decreased $20.4 million year-over-year, primarily due to lower non-operating charges and foreign currency losses. Other expense, net primarily includes foreign currency remeasurement gains and losses on net monetary assets and liabilities, gains and losses on sales of property, plant and equipment, and other non-operating items.

Previous wording

Net interest expense of $3.6 million decreased by $10.8 million in the three months ended June 30, 2026, compared to the same period in 2025, primarily due to the net decrease in outstanding debt year-over-year.

Current wording

Net interest expense of $3.6 million decreased by $7.0 million in the three months ended September 30, 2026, compared to the same period in 2025, primarily due to the net decrease in outstanding debt year-over-year.

Previous wording

The provision for income taxes for the three months ended June 30, 2026 and 2025 was $114.1 million and $106.5 million, respectively, resulting in effective tax rates of 24.0% and 28.4%, respectively. The decrease in effective tax rate is primarily due to the geographic distribution of earnings.

Current wording

The provision for income taxes for the three months ended September 30, 2026 and 2025 was $104.3 million and $76.1 million, respectively, resulting in effective tax rates of 19.9% and 19.7%, respectively. The change in effective tax rate is primarily due to the geographic distribution of earnings.

Previous wording

Revenue increased by $487.5 million during the six months ended June 30, 2026, compared to the prior-year period. The increase was primarily attributable to an increase in Subsea revenue of $542.8 million. This growth was driven by the conversion of backlog, which was 17.4% higher as of December 31, 2025, when compared to December 31, 2024, resulting in increased revenue activity across iEPCI®, SPS supply and services activities, particularly in Latin America, Africa, and the Middle East. This increase was partially offset by lower activity in Europe and North America.

Current wording

Revenue increased by $736.0 million during the nine months ended September 30, 2026, compared to the prior-year period. The increase was primarily attributable $823.6 million higher Subsea revenue. This growth was driven by the conversion of backlog, with backlog being 17.4% higher at December 31, 2025, when compared to December 31, 2024, resulting in increased revenue activity across iEPCI®, SPS supply and Services activities, particularly in Latin America, Africa, and the Middle East. This increase was partially offset by lower activity in North America.

Previous wording

Gross profit (revenue less cost of sales) increased to $1,270.0 million during the six months ended June 30, 2026, compared to $1,058.2 million in the prior-year period. The increase was primarily attributable to an increase in Subsea gross profit of $222.7 million, of which $126.0 million was due to volume increase and $96.8 million was due to favorable activity mix.

Current wording

Gross profit (revenue less cost of sales) increased to $1,998.7 million during the nine months ended September 30, 2026, compared to $1,662.0 million in the prior-year period. The increase was primarily attributable to an increase in Subsea gross profit of $355.1 million, of which $184.0 million was due to volume increase and $171.1 million was due to favorable activity mix.

Previous wording

Restructuring, impairment and other expenses decreased by $12.0 million year-over-year, primarily due to $19.0 million of business transformation initiatives within Surface Technologies incurred in the prior-year period, partially offset by $5.6 million of impairment and restructuring costs primarily within Subsea recognized during the six months ended June 30, 2026.

Current wording

Restructuring, impairment and other expenses decreased by $14.6 million year-over-year, primarily due to $17.1 million of business transformation initiatives within Surface Technologies incurred in the prior-year period.

Previous wording

Net interest expense of $9.6 million decreased by $14.7 million in the six months ended June 30, 2026, compared to the same period in 2025, primarily due to the reduction in outstanding debt year-over-year.

Current wording

Net interest expense of $13.2 million decreased by $21.7 million in the nine months ended September 30, 2026, compared to the same period in 2025, primarily due to the reduction in outstanding debt year-over-year.

Previous wording

The provision for income taxes for the six months ended June 30, 2026 and 2025 was $210.0 million and $193.5 million, respectively, resulting in effective tax rates of 25.2% and 32.0%, respectively. The decrease in effective tax rate is primarily due to the geographic distribution of earnings.

Current wording

The provision for income taxes for the nine months ended September 30, 2026 and 2025 was $314.3 million and $269.6 million, respectively, resulting in effective tax rates of 23.2% and 27.2%, respectively. The decrease in effective tax rate is primarily due to the geographic distribution of earnings.

Previous wording

Subsea revenue increased by $270.6 million during the three months ended June 30, 2026, compared to the same period in 2025, driven by increased backlog in 2025 related to higher energy demand and upstream spending, further aided by our unique commercial offerings. The increase in revenue was driven byiEPCI® and SPS supply activities, primarily $124.3 million from Latin America, $86.2 million from Asia Pacific, $67.2 million from Africa and $55.6 million from the Middle East. The rest of the world contributed a net decrease of $62.7 million primarily driven by project completions mainly in Europe and North America.

Current wording

Subsea revenue increased by $280.8 million during the three months ended September 30, 2026, compared to the same period in 2025, driven by increased backlog in 2025 related to higher energy demand and upstream spending, further aided by our unique commercial offerings. The increase in revenue was driven byiEPCI® and SPS supply and Services activities, primarily $230.1 million from Latin America, $89.8 million from Asia Pacific, and $76.8 million from the Middle East. The rest of the world contributed a net decrease of $115.9 million primarily driven by project completions mainly in North America and Africa.

Previous wording

Subsea operating profit for the six months ended June 30, 2026 increased by $207.3 million compared to the prior-year period. This was largely due to higher volume, which contributed $126.0 million, and favorable activity mix, which added $96.8 million. These improvements were partially offset by a $15.5 million increase in operating expense related to higher activity.

Current wording

Subsea operating profit for the three months ended September 30, 2026 increased by $121.3 million compared to the prior-year period. This was largely due to favorable activity mix, which contributed $66.2 million, and higher volume, which added $66.1 million. These improvements were partially offset by a $10.9 million increase in operating expense related to higher activity.

Previous wording

Surface Technologies revenue decreased by $55.3 million during the six months ended June 30, 2026, compared to the same period in 2025. The decrease wasprimarily attributable to $51.8 million reduction in the Middle East, reflecting thescheduled timing of project related activity and the impact of regional conflict. Revenue in North America decreased by $5.4 million due to lower drilling activity. These declines were partially offset by increased activity across other international markets.

Current wording

Surface Technologies revenue decreased by $32.3 million during the three months ended September 30, 2026, compared to the same period in 2025. The decrease was primarily attributable to lower activity in the Middle East, resulting in a $20.6 million reduction in revenue driven by project timing and regional conflict. Revenue in other international markets decreased by $11.2 million due to project timing and lower activity in Europe and Africa.

Previous wording

Surface Technologies operating profit for the three months ended June 30, 2026 increased by $15.6 million compared to the prior-year period. The increase was due to the absence of $19.0 million of restructuring and impairment charges incurred in 2025. This benefit was partially offset by $3.4 million of lower activity levels in the Middle East and North America.

Current wording

Surface Technologies operating profit for the three months ended September 30, 2026 increased by $4.6 million compared to the prior-year period. The increase was primarily driven by $5.7 million of higher profitability in North America and international markets.

Previous wording

Corporate expense were substantially unchanged compared to the prior-year period.

Current wording

Corporate expense was substantially unchanged compared to the prior-year period.

Previous wording

Subsea revenue increased by $542.8 million during the six months ended June 30, 2026, compared to the same period in 2025, driven by increased backlog during 2025 related to higher energy demand and upstream spending, further aided by our unique commercial offerings. The increase in revenue was driven byiEPCI®, SPS supply and services activities, primarily $376.9 million from Latin America, $218.0 million from Africa and $82.7 million from the Middle East. The rest of the world contributed a net decrease of $134.8 million primarily driven by project completions mainly in Europe for $67.2 million and North America for $40.5 million.

Current wording

Subsea revenue increased by $823.6 million during the nine months ended September 30, 2026, compared to the same period in 2025, driven by increased backlog during 2025 related to higher energy demand and upstream spending, further aided by our unique commercial offerings. The increase in revenue was driven byiEPCI®, SPS supply and Services activities, primarily $607.0 million from Latin America, $162.6 million from Africa, and $159.5 million from the Middle East. The rest of the world contributed a net decrease of $105.5 million, primarily driven by project completions mainly in North America.

Previous wording

Subsea operating profit for the three months ended June 30, 2026 increased by $106.2 million compared to the prior-year period. This was largely due to higher volume, which contributed $62.8 million, and favorable activity mix, which added $42.1 million.

Current wording

Subsea operating profit for the nine months ended September 30, 2026 increased by $328.6 million compared to the prior-year period. This was largely due to higher volume, which contributed $184.0 million, and favorable activity mix, which added $171.1 million. These improvements were partially offset by a $26.3 million increase in operating expense related to higher activity.

Previous wording

Surface Technologies revenue decreased by $42.2 million during the three months ended June 30, 2026, compared to the same period in 2025. The decrease wasprimarily attributable to a $40.1 million reduction in the Middle East, reflecting thescheduled timing of project related activity and the impact of regional conflict. Revenue in North America decreased by $4.0 million due to lower drilling activity. These declines were partially offset by increased activity across other international markets.

Current wording

Surface Technologies revenue decreased by $87.6 million during the nine months ended September 30, 2026, compared to the same period in 2025. The decrease was primarily attributable to a $72.3 million reduction in revenue in the Middle East due to project timing and the regional conflict. Revenue in North America and other international markets decreased by $15.3 million, due to lower drilling and completion activity.

Previous wording

Surface Technologies operating profitfor the six months ended June 30, 2026 increased by $22.5 million, compared to the same period in 2025. This was due to higher activity and favorable mix from international markets which contributed $8.6 million, together with the absence of $19.0 million of business transformation activities incurred in the prior-year period. These favorable impacts were partially offset by a $5.0 million reduction in operating profit due to lower activity levels in the Middle East and North America.

Current wording

Surface Technologies operating profit for the nine months ended September 30, 2026 increased by $27.1 million, compared to the same period in 2025. This was primarily due to favorable mix from international markets, which contributed $10.8 million, together with the absence of $20.1 million of business transformation activities incurred in the prior-year period. These favorable impacts were partially offset by a $3.9 million reduction in operating profit due to lower activity levels in the Middle East and North America.

Previous wording

Corporate expense increased by $11.1 million, compared to the prior-year period, primarily driven by an increase in share-based compensation expense recognized during the first quarter of 2026.

Current wording

Corporate expense increased by $11.9 million, compared to the prior-year period, primarily driven by an increase in share-based compensation expense recognized during the first quarter of 2026.

Previous wording

Subsea - Subsea backlog of $15,833.2 million as of June 30, 2026 decreased by $38.5 million compared to December 31, 2025, and was composed of various subsea projects, including TotalEnergies Mozambique LNG and GranMorgu; bp Tiber, Kaskida and NEP; Petrobras Mero 3 HISEP® and Global 24; Shell Orca; Equinor Raia; Vår Energi Ofelia & Gjøa Nord; ENI Coral North; Woodside Great Western Flank Phase 4, and Energean Katlan.

Current wording

Subsea - Subsea backlog of $15,487.0 million as of September 30, 2026 decreased by $384.7 million compared to December 31, 2025, and was composed of various subsea projects, including TotalEnergies Mozambique LNG and GranMorgu; bp Tiber, Kaskida and NEP; Petrobras Mero 3 HISEP® and Global 24; Shell Orca; Equinor Raia and Johan Sverdrup Phase 3; ExxonMobil Hammerhead and Whiptail; Vår Energi Ofelia & Gjøa Nord; ENI Coral North and Baleine Phase 3; Azule Greater PAJ and West Hub Tails and Woodside Great Western Flank Phase 4.

Previous wording

Surface Technologies - Order backlog for Surface Technologies as of June 30, 2026 decreased by $93.1 million compared to December 31, 2025. Surface Technologies’ backlog of $606.8 million as of June 30, 2026, was composed primarily of projects for customers in the Middle East, namely ADNOC and Saudi Aramco. The remaining backlog was composed of various projects in the rest of the world.

Current wording

Surface Technologies - Order backlog for Surface Technologies as of September 30, 2026 decreased by $121.1 million compared to December 31, 2025. Surface Technologies’ backlog of $578.8 million as of September 30, 2026, was composed primarily of projects for customers in the Middle East, namely ADNOC and Saudi Aramco. The remaining backlog was composed of various projects in the rest of the world.

Previous wording

Operating cash flows - Operating activities provided $880.5 million and $785.9 million during the six months ended June 30, 2026 and 2025, respectively. The increase of $94.6 million in cash from operating activities was primarily driven by higher net income and certain working capital timing benefits, partially offset by increases in trade receivables and contract assets and lower contract liability inflows in the six months ended June 30, 2026 compared to the same period in 2025.

Current wording

Operating cash flows - Operating activities provided $1,411.2 million and $1,311.0 million during the nine months ended September 30, 2026 and 2025, respectively. The increase of $100.2 million in cash from operating activities was primarily driven by higher net income and increases in accounts payable, partially offset by increases in trade receivables and contract assets and lower contract liability inflows in the nine months ended September 30, 2026 compared to the same period in 2025.

Previous wording

Investing cash flows - Investing activities required $110.3 million and $140.8 million during the six months ended June 30, 2026 and 2025, respectively. The decrease of $30.5 million in cash used by investing activities was primarily driven by a $29.7 million reduction in capital expenditures in the six months ended June 30, 2026 compared to the same period in 2025.

Current wording

Investing cash flows - Investing activities required $165.7 million and $211.0 million during the nine months ended September 30, 2026 and 2025, respectively. The decrease of $45.3 million in cash used by investing activities was primarily driven by a $46.0 million reduction in capital expenditures in the nine months ended September 30, 2026 compared to the same period in 2025.

Previous wording

Financing cash flows - Financing activities required $810.0 million and $880.8 million during the six months ended June 30, 2026 and 2025, respectively. The decrease of $70.8 million in cash used by financing activities was primarily driven by a $226.6 million reduction in debt repayments and an increase of $37.9 million from hedging settlements. These decreases were partially offset by increases of $184.7 million in share repurchases and $8.6 million in payments of taxes withheld on share-based compensation in the six months ended June 30, 2026 compared to the same period in 2025.

Current wording

Financing cash flows - Financing activities required $1,228.2 million and $1,412.4 million during the nine months ended September 30, 2026 and 2025, respectively. The decrease of $184.2 million in cash used by financing activities was primarily driven by a $480.6 million reduction in debt repayments and an increase of $37.9 million from hedging settlements. These decreases were partially offset by increases of $254.7 million in share repurchases and $77.6 million in payments of taxes withheld on share-based compensation in the nine months ended September 30, 2026 compared to the same period in 2025.

Previous wording

As of June 30, 2026, TechnipFMC was in compliance with all debt covenants. See Note 10 to our consolidated financial statements for further detail.

Current wording

As of September 30, 2026, TechnipFMC was in compliance with all debt covenants. See Note 10 to our condensed consolidated financial statements for further detail.

Previous wording

Dividends - The cash dividends paid during the six months ended June 30, 2026 were $39.7 million. We intend to pay dividends on a quarterly basis, subject to review and approval by our Board of Directors in its sole discretion.

Current wording

Dividends - The cash dividends paid during the nine months ended September 30, 2026 were $59.2 million. We intend to pay dividends on a quarterly basis, subject to review and approval by our Board of Directors in its sole discretion.

Previous wording

Share Repurchase - We repurchased $684.9 million of ordinary shares during the six months ended June 30, 2026. Based upon the remaining repurchase authority of $1.5 billion and the closing stock price as of June 30, 2026, approximately 22.5 million ordinary shares could be subject to repurchase. All shares repurchased were cancelled.

Current wording

Share Repurchase - We repurchased $1,004.9 million of ordinary shares during the nine months ended September 30, 2026. Based upon the remaining repurchase authority of $1.2 billion and the closing stock price as of September 30, 2026, approximately 17.2 million ordinary shares could be subject to repurchase. All shares repurchased were cancelled.

Previous wording

Refer to our Annual Report on Form 10-K for the year ended December 31, 2025 for a discussion of our critical accounting estimates. During the six months ended June 30, 2026, there were no changes to our identified critical accounting estimates.

Current wording

Refer to our Annual Report on Form 10-K for the year ended December 31, 2025 for a discussion of our critical accounting estimates. During the nine months ended September 30, 2026, there were no changes to our identified critical accounting estimates.